Fowler v FCT – Full Federal Court found that the Div 13A acquisition date was not the date of the contract of employment but later when the shares were worth more [50]

On 27.8.13 the Commissioner issued a Decision Impact Statement in relation to Fowler v FCT [2013] FCAFC 69. In that case, the Full Federal Court unanimously dismissed a taxpayer’s appeal, and held that for the purposes of the former ITAA 1936 employee share scheme (ESS) provisions (Div 13A), a taxpayer acquired a right with respect to share options approximately 2 months later than when he contended he acquired them (and when they were significantly more valuable). In the Decision Impact Statement, the ATO said the taxpayer has not sought special leave to appeal to the High Court. It said it respectfully agrees with the decision of the Full Court on the acquisition date of the shares.

[FJM Note:    This and the McWilliam case (above) appear hard to reconcile on the surface.]

[LTN 165, 27/8/13]